life endowment policy.

[maggie01]

When we married in our 20's we took out a life endowment policy on each other which paid out either at death or after 44yrs.
It is a paid up policy but the 44yrs is up next year.

We divorced 4yrs ago so are no longer husband and wife but is the policy still binding.

[anonanonanon]

If you own a paid up policy, it will no doubt have lower benefits. However, the policyholder will still be able to make a claim on the policy either on death of the life assured or upon maturity. In addition, paid up endowment policies would normally have a surrender policy. Your divorce will not affect the original terms of the policy.

[anonanonanon]

I worked with these policies for 14 years. The fact you are now divorced should not affect the benefits of the policy. If the policy is paid up then the benefits will be reduced, it should have a current surrender value and will mature on the same date. The life assured would still be insured and the death benefits remain binding to the policyholder. Hope this helps, however one quick call to your insurance provider will clarify 100%

[maggie01]

Thanks for the replies . Why would the benefits be reduced because the policy is paid up. Sorry I don't understand that.
It was a policy which was paid for I believe 15yrs but other than if one of us died would not mature untill 44 yrs later.

They are never written in plain english

[buildersmate]

A 'paid up' policy is one that the policyholder has voluntary stopped the monthly payments.
Since you have paid less into it, the returns of the investment part of the endowment will be less.
Endowment policies had 2 components to them - the life insurance aspect and the investment returns based on the profits of the life assurance company. They have long since gone out of fashion.

[maggie01]

This was a policy which had to be paid for 15yrs and then it was a paid up policy. I did not stop paying it. It had to be left in for 44yrs or paid out if one of us died.
I thought the policy came out next year but it is this year and it has made a lot of interest. Thank you all for your replies.